Palos Verdes, California
Steve Campbell
Business Development Officer
Factoring services with the professional and personal care that you'll appreciate.
Flexible terms that don't lock you into long-term contracts or force you to factor all your invoices.
These factoring companies strive for excellence and deliver quality service to customers.
Factoring companies that follow best practices and have become industry leaders.
Business relationships with the highest ethical values and principles in the industry.
People that love helping you and your business succeed and grow to the next level.
IFA, SFNet
IFA, SFNet, BBB
IFA
IFA
Invoice factoring, or accounts receivable factoring, solves the cash flow problem caused by your customers’ trade credit terms. Trade credit is a business-to-business (B2B) agreement in which your customer purchases goods or services on account without paying you up-front.
Credit terms are typically 30 days or more, depending on your industry and customer. Factoring companies advance you cash for your new invoices, so you don’t have to wait for 30, 45 or 60+ days to receive your hard-earned cash.
Factoring companies offer rates as low as 1.5% for businesses that factor millions in invoices each month from top-rated customers. Smaller businesses can generally expect to pay anywhere between 3% to 4% of the invoice amount depending on monthly factoring amount, invoice volume, and days outstanding.
Factoring companies don’t advance the full amount of your invoices. They hold a reserve as an allowance for any unexpected bad debts or short-falls. Advance rates are typically 80% to 90% for most industries. Trucking factoring companies usually offer higher advance rates, as much as 100%.
Contract lengths range anywhere from one month to 2 years, with some factoring companies offering a no-term contract that lets you cancel at any time. This is probably the most important consideration when looking for a factoring company. Don’t get locked into a long-term contract because your situation my change at any time.
Many factoring companies offer non-recourse factoring which is a credit guarantee that protects you if your customer doesn’t pay. Non-recourse factoring usually costs more than recourse, but it may be worth the insurance. Non-recourse only applies to losses resulting from credit issues such as insolvency or bankruptcy. No matter the recourse option, you’re always liable for disputes, faulty goods or incorrect billing.
Trucking companies all across the nation depend on freight factoring to run and operate their businesses. Freight factoring stabilizes your cash flow by giving you immediate cash for your freight bills upon load delivery. You don’t have to wait 30 to 60 days for your customers to pay, which enables you to handle more deliveries.
Freight bill factoring provides a complete financing alternative to negotiating with every single freight broker for which you deliver goods. Freight factoring companies handle all your invoices, no matter how many brokers you have. This is especially important for trucking companies that work with a large number of freight brokers such as C.H. Robinson, TQL, or XPO Logistics.
If you operate a trucking company, and your shipping customers and freight brokers have good credit but are slow paying their freight bills, then you should consider freight bill factoring. Not only do you get cash advances, but you often receive other benefits such as fuel cards; fuel discounts; or tire and maintenance discount programs.
Freight factoring rates are very competitive. Truck factoring companies offer rates as low as 1.5% for large carriers that factor millions in freight invoices each month, while owner-operators and smaller truck companies with one to five trucks can expect to pay between 2.5 to 3.5% for freight factoring services.
Trucking companies enjoy the best advance rates in the factoring industry. Other types of businesses such as staffing or construction often carry advance rates of 85% or less, but trucking cash advance rates are often 95% or more. Some freight factoring companies fully-fund 100% of your freight bills, advancing the entire invoice amount less factoring fees.
Many freight factoring companies offer the option of non-recourse factoring which is a credit guarantee that protects you from customer non-payment due to credit issues. Non-recourse factoring usually costs more than recourse, but it may give you the peace of mind you need to sleep at night. Recourse and non-recourse factoring pertain only to non-payments resulting from credit issues such as insolvency or bankruptcy. You’re still liable for disputed claims, non-delivered goods or incorrect billing.
Truck factoring companies advance you cash to keep your trucks on the road, but they also do much more. Trucking factoring companies typically provide back office functions such as credit checks on brokers and shippers; invoice generation and submission; receivables processing and accounting; as well as professional collections. These services are extremely helpful to any trucker, whether your a single owner-operator or a large carrier.
Speed is critical in the trucking industry, especially when you need to get paid for your deliveries. It’s why the entire trucking industry depends on freight factoring. Whether you’re an independent owner-operator, mid-size fleet, or large carrier, you’ll benefit from freight bill factoring for consistent cash flow. Freight factoring is the fastest way to get paid by your shippers and freight brokers, so you can deliver more loads and grow your business.